2023 Earned Income Tax Credit Due Diligence

2023 Earned Income Tax Credit Due Diligence

Required Due Diligence Questions for Certain Income Tax Positions
The IRS requires tax return preparers to complete a due diligence checklist with all income tax returns that contain certain credits and deductions, with steep penalties for noncompliance. Your return qualifies for the following special credits/deductions; therefore, it is imperative you read and understand this entire document. YOUR RETURN WILL NOT BE FINALIZED UNTIL YOU ANSWER EACH QUESTION BELOW AND SIGN AND RETURN THIS DOCUMENT TO US.

EARNED INCOME TAX CREDIT:
This credit is based on the level of your income for 2023, and whether or not you have qualifying children. In order to qualify, you must meet ALL OF the following requirements, in addition to the income requirements:
- You must have a valid social security number by the due date of your return.
- Your filing status cannot be married filing separately.
- You must be a US citizen or resident alien for the full year.
- You cannot have foreign earned income.
- Your investment income for 2023 (including non-taxable interest and dividends) cannot be greater than $11,000.
1.1: Do you meet all of the requirements above?

YesNo
IF NO, YOU CAN STOP AS YOU DO NOT QUALIFY FOR THE EARNED INCOME TAX CREDIT.

PLEASE NOTIFY YOUR TAX PREPARER THAT YOU DO NOT QUALIFY FOR THE EARNED INCOME TAX CREDIT!

Section A:

If you have a qualifying child, you must meet ALL OF the following requirements:
- Your qualifying child cannot be used on more than one tax return each year to claim the Earned Income Credit.
- You cannot be a qualifying child (see details on previous page) of another taxpayer.
- The child must have lived with you greater than half of the year, even if you supported the child.
NOTE: For children of divorced or separated parents, the child will be treated as the custodial child of the parent with whom they lived the greater number of nights during the year. If the number of nights were equal, the custodial parent is the parent with the higher adjusted gross income.
A.1: Do you meet the requirements above?

YesNo
A.2: List each one of your qualifying children who met the above requirements for 2023.
Section B:

If you do not have a qualifying child, you must meet ALL OF the following requirements:
- You must be at least age 19 (24 if you are a full-time student).
- You cannot be a dependent or qualifying child of another person.
- You must have lived in the US for greater than half of the year.
B.1: Do you meet the requirements above?

YesNo

PLEASE ANSWER THE FOLLOWING QUESTIONS:
Did both the taxpayer and spouse meet every one of these requirements for 2023?

YesNo
Did you have any income in 2023 that you have not reported to us?

YesNo
If your tax return was to be audited by the IRS, you would need to provide documentation to prove that you qualify for this credit. Would you be able to provide them with such documentation if requested?

YesNo
Have you ever been notified by the IRS that this credit was disallowed or reduced in a previous year?

YesNo
By signing below, you indicate that you and your spouse, if applicable, have read and agreed to all of the above answers.
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